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If tax breaks are there to be availed, why wouldn't anyone avail them. Does anyone pay more tax than they are legally obligated to ? It doesn't make much sense
by option_greek 5y ago
If tax breaks are there to be availed, why wouldn't anyone avail them. Does anyone pay more tax than they are legally obligated to ? It doesn't make much sense because the house prices already account for tax breaks, low interest rates and high rents. If one is to voluntarily to reduce rent or pay more tax or take higher interest loans, they would just be making losses and won't be in business for long. Many of these are not individual choices. They are choices of the market as a whole. Of course you can certainly get lawmakers to remove these tax breaks but till then no sane person would pay more tax even if they are progressive leaning in beliefs (not to mention most tax money goes to military spending so its not like paying taxes is even good by default).
- lmm 5y agoThe tax breaks are popular because they're advertised as making it easier for people to buy homes; in fact as you say they get priced in and so end up pushing up prices and making it harder for people to buy homes. "No sane person would voluntarily refrain from exploiting tax loopholes" is the same kind of argument as "no sane person would voluntarily spend money to avoid damaging the environment". In fact there are plenty of people with a decent moral compass who do exactly that.